NEW YORK, May 12 (IFR) - American Homes 4 Rent has narrowed
price guidance on its US$482.7m six-tranche home rental bond
offering, just the third trade of its kind in the new asset
The issuer tightened guidance by 5bp on the two top-rated
tranches, with the Triple A rated portion revised to L+
110bp-115bp from early talk of L+115bp-120bp and the Double A
slice revised to L+145bp-150bp from L+150bp+155bp.
It also narrowed guidance on the next two classes by roughly
5bp, with the Single A plus-rated C notes now at L+190bp area
and the split rated D tranche now at L+225bp area.
Prices were tightened even more aggressively on the two
lowest-rated tranches, with the Triple B rated E notes now in
the L+270bp area from 280bp and the Double B rated F piece at
L+360bp area from L+380bp.
Goldman Sachs (structuring), JPMorgan and Wells Fargo are
co-lead managers on the trade.
The new trade would be just the third in the nascent
single-family rental (SFR) bond market.
Roughly a dozen large institutional buyers dominate the
sector, buying up US foreclosed homes at bargain prices to
revamp as rentals.
(Reporting by Joy Wiltermuth; Editing by Marc Carnegie)